Palantir Rides Dell's AI Server Boom and a Six-Year Construction Deal to a Nearly 14% Weekly Gain

Palantir Technologies capped its strongest week since April with a 9% jump on Friday, closing at €134.18 in European trading. The surge came on the back of two distinct catalysts: a blockbuster earnings report from Dell Technologies that validated the AI infrastructure buildout, and a long-term contract extension with Canadian construction firm Thomas Cavanagh that locks in revenue visibility through the end of 2035.

The Cavanagh deal extends the partnership by six years to a total of 11 years, cementing Palantir’s Foundry platform as the digital backbone for the heavy civil contractor. While the financial terms were not disclosed, the multi-year commitment underscores the stickiness of Palantir’s enterprise software in capital-intensive industries.

The bigger spark came from Dell, which reported first-quarter revenue of $43.8 billion, up 88% year over year, propelled by AI-optimized server sales of $16.1 billion — a staggering 757% jump. Dell now expects its AI server segment to generate roughly $60 billion in revenue for the full fiscal year. That matters for Palantir because the two companies, together with Nvidia, jointly market an “AI Factory” model that lets customers run Palantir’s Foundry and AIP platforms on their own infrastructure. Dell’s numbers are the clearest evidence yet that enterprises are spending heavily on that exact setup.

Snowflake added further tailwinds for the broader software sector. The data cloud company reported product revenue of $1.33 billion in its fiscal first quarter, up 34% year over year, and announced a multi-billion-dollar deal with Amazon Web Services. The earnings lifted sentiment across the SaaS space, and Palantir — a high-beta name in the AI ecosystem — benefited disproportionately.

Should investors sell immediately? Or is it worth buying Palantir?

Palantir’s own fundamentals continue to justify the enthusiasm. In its fiscal first quarter, total revenue climbed 85% to $1.63 billion. US commercial revenue surged 133%, while US government revenue rose 84% to $687 million. Management raised its full-year revenue guidance to between $7.65 billion and $7.66 billion.

Yet the valuation remains the predominant source of angst. Even after the week’s gains, the trailing price-to-earnings ratio sits at roughly 176 — a level that leaves the stock acutely sensitive to any shift in AI sentiment. The shares are still down 6.2% year-to-date and about 25% below the 52-week high of €179.86.

Technically, the rally has been impressive. Palantir reclaimed its 50-day moving average near €121 and its 100-day average at €125. Trading volume on Friday was 89% above the daily average, suggesting conviction behind the move. But the next hurdle — the 200-day moving average at €138.36 — is just 3% above the current price, and the relative strength index at nearly 90 signals that the stock is deeply overbought in the near term.

Palantir at a turning point? This analysis reveals what investors need to know now.

Looking ahead, the annual general meeting in 2026 has drawn attention from activist shareholders. A group led by the Sisters of Saint Joseph of Peace is pushing for a formal human rights review of Palantir’s AI activities, a sensitive topic given the company’s deep ties to military and law enforcement clients. The next earnings report is due on August 3, with analysts forecasting earnings per share of $0.33 on revenue of $1.81 billion. The average price target of roughly $192 implies substantial upside — provided the growth narrative holds.

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